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On 16 November 2016 the Sejm (lower chamber of the Parliament) adopted a bill to amend the VAT Act and certain other statutory laws, calling for numerous changes in the VAT Act and the Criminal Fiscal Code, among other laws.

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New Labor Code approved in Kazakhstan

New Labor Code approved in Kazakhstan

December 18, 2015

On 23 November 2015, the President of Kazakhstan approved the new Labor Code, which will take effect on 1 January 2016. Because of the significant number of changes and their importance to both employers and employees, we plan a series of workshops to explain the main provisions and novelties in the new Labor Code. In addition, our lawyers have devised a model employment agreement with all necessary changes taken into account.

If you wish to book a workshop or purchase the model agreement, please feel free to contact us at almaty@dentons.com.

In our opinion, the most important changes to the labor code of Kazakhstan are the following:

Until now, the purpose of labor laws was to protect the interests of employees. For the first time, the objective of the labor laws is to create legal conditions aimed at ensuring a balance of interests of the parties to labor relationships.

The law provides for a possibility to enter into a non-competition agreement.

The term of an employment agreement is regulated, including with respect to the persons who have reached pension age, as well as the terms of agreements entered into with small-sized businesses.

A new article on secondment is added.

The probation period for certain categories of employees may be extended to six months.

Additional reasons for termination of employment agreements by employers are included.

The law provides for a possibility to set a longer notice period in the employment agreement for its termination by the employee.

The law envisions a possibility to terminate an employment agreement by mutual consent between the parties, without complying with the procedure for its termination, provided that compensation is paid in the amount set forth in the agreement.

An additional reason for termination – the transfer of an employee to another employer – is included.

Leave provisions are set forth in more detail. A new requirement is added that a part of the paid annual leave provided to an employee must be at least two calendar weeks, out of the leave duration provided for in the employment agreement.

The work of the head and other members of a collective executive body at legal entities is regulated in more detail.

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